<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-15796
Corporate Realty Income Fund I, L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3311993
(State of organization) (I.R.S. Employer
identification No.)
406 East 85th Street, New York, New York 10028
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 794-3292
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
Index
Page No.
Part I Financial information 3
Balance Sheets --
March 31, 1996 and December 31, 1995 4
Statements of Operations --
For the three months ended March 31, 1996 and 1995 5
Statements of Cash Flows --
For the three months ended March 31, 1996 and 1995 6
Notes to the Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II Other information 10
Signatures 11
<PAGE>
Part I. Financial Information
Item I. Financial Statements
The summarized financial information contained herein is unaudited; however, in
the opinion of management,all adjustments necessary for a fair presentation of
such financial information have been included.
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
BALANCE SHEETS
March 31, 1996 and December 31, 1995
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
Real estate, at cost:
Land $13,598,425 $13,598,425
Buildings and improvements 71,516,797 71,444,155
85,115,222 85,042,580
Less accumulated depreciation 16,586,499 15,974,431
68,528,723 69,068,149
Cash and short-term investments at cost,
which approximates market value 386,550 397,432
Accounts receivable 99,224 437,191
Note receivable 15,876 17,694
Step rent receivables 2,791,066 2,784,802
Deferred charges, net of accumulated amortization
of $21,937 in 1995 -- 7,313
Lease commissions, net of accumulated amortization
of $1,088,000 in 1996 and $1,007,199 in 1995 1,622,848 1,628,004
Deposits 33,142 33,142
Other assets 16,650 41,624
Total assets $73,494,079 $74,415,351
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
<S> <C> <C>
Mortgage loan payable $7,800,000 $ 7,800,000
Accounts payable and accrued expenses 1,227,369 1,457,029
Due to affiliates (46,428) (44,788)
Other liabilities 699,243 325,161
Total liabilities 9,680,184 9,537,402
Partners' Capital (Deficit):
General partners:
Capital contributions 1,000 1,000
Net income 374,574 373,356
Cash distributions (466,096) (456,581)
(90,522) (82,225)
Limited partners: ($25 per unit; 4,000,000 units
authorized, 3,105,684 and 3,127,484 issued and
outstanding in 1996 and 1995, respectively)
Capital contributions, net of offering costs 73,042,298 73,276,650
Net income 37,082,705 36,962,115
Cash distributions (46,220,586) (45,278,591)
63,904,417 64,960,174
Total partners' capital 63,813,895 64,877,949
Total liabilities and partners' capital $73,494,079 $74,415,351
See accompanying notes to financial statements.
</TABLE>
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the three months ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Income:
Rental $1,984,802 $2,117,751
Interest and other income 200 14,469
1,985,002 2,132,220
Expenses:
Interest 177,017 179,833
Depreciation 612,068 584,064
Amortization 88,114 82,011
Property operating 679,388 648,314
Management fees 166,700 132,228
General and administrative 139,907 83,812
1,863,194 1,710,262
Net income from real estate operations 121,808 421,958
Unrealized gain on marketable securities -- 21,665
-- 21,665
Net income $ 121,808 $ 443,623
Net income allocated:
To the general partners $ 1,218 $ 4,436
To the limited partners 120,590 439,187
$ 121,808 $ 443,623
Net income per unit of limited partnership interest $0.04 $0.14
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1996 and 1995
Increase/(Decrease) in Cash
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net income $121,808 $443,623
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 700,182 666,075
Unrealized gain on marketable securities -- (21,665)
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable 337,967 ---
Note receivable 1,818 1,746
Step rent receivables (6,264) (90,711)
Lease commissions (75,645) (47,067)
Other assets 24,974 32,258
Increase (decrease) in:
Accounts payable and accrued expenses (229,660) (194,801)
Due to affiliates (1,640) (40,251)
Other liabilities 374,082 (9,494)
Total adjustments 1,125,814 296,090
Net cash provided by operating activities 1,247,622 739,713
Cash flows from investing activities:
Acquisition of real estate (72,642) (2,313)
Cash used in investing activities (72,642) (2,313)
Cash flows from financing activities:
Capital repurchase (234,352) --
Cash distributions to partners (951,510) (969,697)
Cash used in financing activities (1,185,862) (969,697)
Net decrease in cash and short-term investments (10,882) (232,297)
Cash and short-term investments at beginning of period 397,432 1,291,972
Cash and short-term investments at end of period $386,550 $1,059,675
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
1. General
The accompanying financial statements and related notes should be read in
conjunction with the Partnership's annual report for the year ended
December 31, 1995 as certain footnote disclosures which would substantially
duplicate those contained in such audited financial statements have
been omitted from this report.
2. Rental Income
In accordance with the Financial Accounting Standards Board Statement
No. 13, "Accounting for Leases," the Partnership recognizes
rental income on a straight-line basis over the fixed term
of the lease period. Step rent receivables represent unbilled future
rentals. The following reconciles rental income received in cash to
rental income recognized.
<TABLE>
<CAPTION>
Three Months Ended
1996 1995
<S> <C> <C>
Rental income received in cash $1,978,538 $2,027,040
Step rent receivables 6,264 90,711
Rental income recognized $1,984,802 $2,117,751
</TABLE>
3. Leases
Minimum future rentals under noncancellable operating leases as of
March 31, 1996 are as follows:
<TABLE>
Year ending December 31
<S> <C>
1996 $ 4,783,000
1997 6,741,000
1998 6,247,000
1999 5,981,000
2000 5,332,000
Thereafter 5,568,000
Total $34,652,000
</TABLE>
In addition to the minimum lease amounts, the leases provide for escalation
charges to the tenants for operating expenses and real estate taxes.
Escalation charges have been included in rental income.
For the three months ended March 31, 1996 and 1995, escalation charges
amounted to $323,165 and $365,737, respectively.
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
4. Transactions with General Partners and Affiliates
Fees incurred and reimbursable expenses for the three months ended
March 31, 1996 are:
<TABLE>
<CAPTION>
Three
Months
<S> <C>
Partnership management fees $67,900
Property management fees 98,800
Administration expenses 34,422
</TABLE>
During the three months ended March 31, 1996, the Partnership paid
to the General Partners leasing commissions in the amount of $75,645.
5. Supplemental Disclosure of Cash Flow Information
Cash paid for interest during the three months ended March 31, 1996
and 1995 amounted to $177,017 and $179,833, respectively.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three months ended March 31, 1996.
Liquidity and Capital Resources
At March 31, 1996, the Partnership had cash and working capital of
approximately $500,000 which was invested in unaffiliated money market
funds and interest-bearing bank accounts.
Except for approximately 20,000 square feet (half in Monterey Park,
California and half in Oklahoma City), all of the Partnership's buildings
are now fully leased. The Partnership does not anticipate expending any
significant additional funds for tenant improvements during 1996.
The Partnership expects sufficient cash flow to be generated from
operations to meet its current operating and debt service requirements
on a short-term and long-term basis. The Partnership's only significant
liability is a mortgage loan of $7,800,000. The lender, Pittsburgh
National Bank, has extended the maturity date of the subject loan from
March 31, 1996 until September 31, 1996.
Results of Operations
Rental revenues in the first quarter of 1996 decreased from 1995
as a result of lower rents on the leases that expired in late 1995 and
were renewed at current market rates. All expenses (except interest)
in the first quarter of 1996 increased from 1995, reflecting a shift
of several leases from net leases (under which the tenant
pays the expenses) to gross leases (under which the landlord
pays the expenses).
<PAGE>
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) No reports on Form 8-K were filed during the quarter in which this
report is filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
CORPORATE REALTY INCOME FUND I, L.P
(Registrant)
Date: May 9, 1996 By:Robert F. Gossett, Jr.
President, Director
Date: May 9, 1996 By:Pauline G. Gossett
Secretary
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
Article 5 of Regulation S-X
This schedule contains summary financial information extracted from
registrant's audited financial statements as at and for the year ended
December 31, 1995 and unaudited financial statements as at and for the
three months ended March 31, 1996 and 1995 and is qualified in its
entirety by reference to such financial statements.
<TABLE>
<CAPTION>
March 31, December 31
1996 1995
(Unaudited)
<S> <C> <C>
Cash $386,550 $397,432
Securities 0 0
Receivables 99,224 437,191
Allowances 0 0
Inventory 0 0
Current Assets 551,442 927,083
PP&E 85,115,222 85,042,580
Accumulated Depreciation 16,586,499 15,974,431
Total Assets 73,494,079 74,415,351
Current Liabilities 1,880,184 1,737,402
Bonds 7,800,000 7,800,000
Preferred-Mandatory 0 0
Preferred 0 0
Common 63,813,895 64,877,949
Other-SE 0 0
Total Liabilities and Equity 73,494,079 74,415,351
<CAPTION>
For the three months ended March 31, March 31,
1996 1995
<S> <C> <C>
Sales 1,984,802 $2,117,751
Total Revenue 1,985,002 2,132,220
CGS 0 0
Total Costs 1,546,270 1,446,617
Other Expenses 139,907 83,812
Loss Provision 0 0
Interest Expense 177,017 179,833
Income PreTax 121,808 421,958
Income Tax Expense 0 0
Income Continuing 121,808 421,958
Discontinued 0 0
Extraordinary 0 21,665
Changes 0 0
Net Income 121,808 443,623
EPS-Primary 0.04 0.14
EPS-Diluted 0.04 0.14
</TABLE>
<PAGE>
